A residential site (pictured) at Yishun Avenue 9 attracted a total of five bids when its tender closed on Tuesday, the URA said.

A residential site (pictured) at Yishun Avenue 9 attracted a total of five bids when its tender closed on Tuesday, the URA said.

EL Development submitted the top bid of $278.8 million for the 20,553.8 sqm plot. This translates to about $4,844 psm on the gross floor area. 

The second-highest bid came from a consortium comprising FCL Topaz, Tannery Holdings and Sekisui House, while the lowest bidder was Sim Lian Land.  

Launched for sale on 16 December 2013, the land parcel has a lease period of 99 years. 

CBRE Research Head Desmond Sim said: "The bids show some level of restraint on the part of developers. This restraint is reflected in the relatively narrow margins between the first and the fourth bid that fall within a 10 percent band. Developers are mindful of the changing tides and softening of the market.

"With the new announcement on HDB resale procedures moving away from the focus on high COV, demand from HDB upgraders could dampen. Traditionally, COV has been the propellant for HDB upgrader demand for mass market condominium projects. In addition, an estimated 900 private apartment units will be offered for sale later this year, from the upcoming project located beside Northpoint."
According to Sim, the site is located near a future road which will lead to Seletar Aerospace Park. It is also adjacent to an industrial zone and a short drive to Yishun Central which is being rejuvenated. "This gives buyers the opportunity to tap into the rental market," he noted.

Meanwhile, a decision on the award of the tender will be made after the bids have been evaluated. 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg

Source: PropertyGuru.com.sg

Date Post: 12/3/2014
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